Generally, foundations registered in Malta may not trade or carry out commercial activities. Having said that, foundations may be endowed with commercial property or other profit making enterprise as long as it is the passive owner of the asset.
Some flexibility in this context is afforded to foundations in some other specific scenarios. However, by virtue of an amendment to the Second Schedule to the Civil Code that took place last July, a foundation may may issue tokens and carry out any trading activity resulting from such foundation owning, administering or otherwise operating an innovative technology arrangement as defined in the Malta Digital Innovation Authority Act or carrying out such other acts involving tokens to establish rights, powers, benefits or purposes with reference to users or beneficiaries as may be stated in any whitepaper relating to the issue of such tokens.
This amendment is an important step forward towards granting the foundation, the required tools in order for it to become a central vehicle in the innovative technology space.